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4Ps: known as the marketing mix, these are the basic tools of marketing: product, place, price and promotion. 7Ps: An extended marketing mix that takes account of the particular characteristics of services markets: product, price, place, promotion, physical evidence, people and processes.
Adaptation: (a) Tailoring a product or other aspects of the marketing mix to suit the different needs and demands of other markets, usually international; (b) Changing production methods or product specifications in a B2B market in order to better meet an individual customer's requirements. Advertising: A paid form of non-personal communication transmitted through a mass medium. Advertising media: The means through which advertisements are delivered to the target audience. Media include broadcast media, print media, cinema, hoardings and outdoor media. Advertorial: A form of print advertising that is designed to mimic the editorial content, style and layout of the publication in which it appears. Agents and brokers: Intermediaries who have legal authority to act on behalf of a seller in negotiating sales, but who do not take title to goods themselves. Or Broker does not represent either the buyer or seller where as an agent represent one party or other. Alternative currencies: Trading stamps, tokens or loyalty scheme points awarded on the basis of the amount spent by the customer that can be accumulated and then exchanged for gifts or discounts. An-off matrix: A framework for considering the relationship between general strategic direction and marketing strategies. The four-cell matrix looks at permutations of new/existing products and new/existing markets. Atmosphere: (a) The elements that come together to make an impact on retail customers' senses as they enter and browse in a store; (b) creating a feeling appropriate to the character of the store and the desired mood of the customers. Attitude: The stance that individuals take on a subject that predisposes them to act and react in certain ways. Augmented product: Add-on extras that do not form an integral part of the product but which might be used, particularly by retailers, to increase the product's benefits or attractiveness. Includes guarantees, installation, after-sales service, etc. Awareness: The consciousness that a product or organization exists.
B2B goods: Goods that are sold to organizations for: (a) Incorporation into producing other products; or (b) supporting the production of other products directly or indirectly; or (c) resale. B2B marketing: (also known as industrial marketing or organizational marketing) activities directed towards the marketing of goods and services by one organization to another.
Banner advertising: Advertising that appears on a website, usually as a banner across the top of a page that clicks the user through to the advertiser's website. Behaviour segmentation: Grouping consumers in terms of their relationship with the product, for instance their usage rate, the purpose of use, their willingness and readiness to buy, etc. BIGIF: A form of product based sales promotion – buy one get one free also known as BOGOFF. Boston Box: (also known as the BCG matrix) a tool for analyzing a product portfolio, plotting relative market share against market growth rate for each product. The resultant matrix classifies products as cash cows, dogs, question marks and stars. Brand loyalty: Occurs when a consumer consistently buys the same brand over a long period. Branding: The creation of a three-dimensional character for a product, defined in terms of name, packaging, colors, symbols, etc., that helps to differentiate it from its competitors, and helps the customer to develop a relationship with the product. Breadth of range: The variety of different product lines either (a) produced by a manufacturer; or (b) stocked by a retailer. Breakeven analysis: Shows the relationship between total costs and total revenue in order to assess the profitability of different levels of sales volume. Bulk breaking: Buying large quantities of goods and then reselling them in smaller lots, reflecting some of the cost savings made through bulk buying in the resale price. A prime function of intermediaries. Business format franchise: Allows a franchisee access not only to a product concept, but also to a comprehensive package that allows the product or service to be delivered in a standardized way regardless of the location. Business to business marketing: (also known as industrial marketing or organizational marketing) activities directed towards the marketing of goods and services by one organization to another. Buyer readiness stages: Categories consumers in terms of how close they are to making a purchase or a decision. Stages range from initial awareness, through to interest, desire and, finally, action. Buyer–seller relationship: The nature and quality of the social and economic interaction between two parties. Buying centre: A group of individuals, potentially from any level within an organization or from any functional area, either contributing towards or taking direct responsibility for organizational purchasing decisions. The buying centre might be formally constituted, or be a loose informal grouping.
CAPI: computer aided personal interviewing. Cash rebate: a form of sales promotion usually involving the collection of a specified number of proofs of purchase in order to qualify for a cash sum or for acoupon. Catalogue showrooms: a High Street store selling goods through catalogues displayed in the outlet, with the customer collecting goods immediately from a pick-up point on the premises. CATI: computer aided telephone interviewing. Cause related marketing: linkages between commercial organisations and charities that can be used by both parties to enhance their profiles and to help achieve their marketing objectives. Channel of distribution: the structure linking a group of organisations or individuals through which a product or service is made available to potential buyers. Channel strategy: decision taken about the allocation of roles within a channel of distribution, and the way in which the channel is formally or informally managed and administered. Closed questions: market research questions which offer the respondent a limited list of alternative answers to choose from. Closing the sale: the stage of the personal selling process in which the customer agrees to purchase. Cognitive dissonance: a state of psychological discomfort arising when a consumer tries to reconcile two conflicting states of mind, for example, the positive feeling of having chosen to buy a product and the negative feeling of being disappointed with it afterwards. Cold calling: unsolicited visits or calls made by sales representatives to potential customers. Collaborative R&D: pooling resources and expertise with one or more other organisations to undertake a research and development project jointly. Commission: a percentage of the value of goods sold paid as total or partial remuneration to a sales representative or agent. Comparative advertising: a type of advertising that seeks to make direct comparison between a product and one or more of its competitors on features or benefits that are important to the target market. Competitive advertising: a commonly used type of advertising that communicates the unique benefits of a product, differentiating it from the competition. Competitive edge: having a clear advantage over the competition in terms of one or more elements of the marketing mix that is valued by potential customers.
Competitive position: the organisation's strategic position in a market compared with its competitors: leader, challenger, follower or nicher. Competitive posture: an organization’s means of dealing with competitors' actions in a market, proactively or reactively. Postures can be aggressive, defensive, cooperative or independent. Competitive strategy: how an organization chooses to compete within a market, with particular regard to the relative positioning and strategies of competitors. Concept testing: the presentation of a new product concept, in terms of its function, benefits, design, branding, etc., to a sample of potential customers to assess their reactions, attitudes and purchasing intentions towards it. Concessions: (also known as stores within stores) trading areas usually within department stores, sold, licensed or rented out to manufacturers or other retail names so that they can create their own distinctive trading image. Consumer decision-making: the process that consumers go through in deciding what to purchase, including problem recognition, information searching, evaluation of alternatives, making the decision, and post-purchase evaluation. Consumer goods: goods that are sold to individuals for their own or their families' use. Contracting: a type of market entry method whereby a manufacturer contracts with a company in a foreign market to produce or assemble goods on its behalf. Contests and sweepstakes: a form of sales promotion in which customers are invited to compete for a specified number of prizes. Contests must involve a degree of skill or knowledge, whereas sweepstakes are effectively open lotteries. Continuous innovation: products are upgraded and updated regularly in relatively small ways that make no great changes to the customer's buying behaviour. Continuous research: research undertaken, usually by commercial market research organisations, on a long-term, ongoing basis, to track changing patterns in markets. Control and evaluation: mechanisms for ensuring that marketing plans are properly implemented, that their progress is regularly measured and assessed and that any deviations are picked up early enough to allow corrective action to be taken. Convenience goods: relatively inexpensive frequently purchased consumer goods; related to routine problem solving buying behaviour. Convenience stores: usually small neighborhood grocery stores that differentiate themselves from the supermarkets through longer opening hours and easy accessibility. Conversion rate: the number of enquiries from potential customers or sales visits made by sales representatives that actually turn into orders or sales. Co-operative advertising: a form of sales promotion targeted at intermediaries through which manufacturers agree to fund a percentage of the intermediary’s local advertising costs as long as the manufacturer's product appears in the advertising material.
Copywriting: writing the verbal (written or spoken) elements of an advertisement. Core product: the prime purpose of a product's existence which might be expressed in terms of functional or psychological benefits. Corporate chain: multiple retail outlets under common ownership, usually with national coverage. Corporate identity: the character and image of an organisation, reflecting its culture, that is presented to its various publics, including the organisation's name and logo. Corporate objectives: the overall objectives of the organisation that influence the direction of marketing strategy. Corporate PR: public relations activities focused on enhancing or protecting the overall corporate image of an organisation. Corporate social responsibility (CSR): the need for organisations to consider the good of the wider communities, local and global, within which they exist in terms of the economic, legal, ethical and philanthropic impact of their way of conducting business and the activities they undertake. ‘The CSR firm should strive to make a profit, obey the law, be ethical, and be a good corporate citizen' (Carroll, 1991 see Chapter 1 references). Count and recount: a form of sales promotion targeted at intermediaries through which rebates are given for all stock sold during a specified promotional period. Coupons: a form of sales promotion consisting of printed vouchers, distributed in a variety of ways that allow a customer to claim a price reduction on a particular product or at a particular retailer's stores. Creative appeal: the way in which an advertising message is formulated in order to provoke the desired response from the target audience. Types of appeal include rational, emotional, productorientated or consumer-orientated appeal. CSR: see corporate social responsibility. Culture: the personality of the society in which an individual lives, manifest in terms of the built environment, literature, the arts, beliefs and value systems. Cybermediary: an e-tailer that sells direct to the customer; also any online intermediary that helps the individual to locate a specific website or guides them towards sites of interest. Search engines, online shopping malls and online directories are all cybermediaries.
Data-based budget setting: setting advertising or marketing budgets using methods that do not involve guesswork or arbitrary figures. The two main methods are competitive parity, and objective and task.
Database marketing: compiling, analysing and using data held about customers in order to create better tailored, better timed offers that will maximise customer value and loyalty. Decision-making unit (DMU): see buying centre. Demographic segmentation: more demographic factors. grouping consumers on the basis of one or
Demographics: the measurable aspects of population structure, such as birth rates, age profiles, family structures, education levels, occupation, income and expenditure patterns. Department stores: large stores, usually located in town centres, which are divided into discrete departments selling a very wide range of diverse goods, from clothing to travel, from cosmetics to washing machines. Depth of range: the amount of choice or assortment within a product line. Derived demand: where demand for products or components in B2B markets depends on consumer demand further down the chain; for example demand for washing machine motors is derived from consumer demand for washing machines. Differential advantage: see competitive edge. Diffusion of innovation: a concept suggesting that customers first enter a market at different times, depending on their attitude to innovation and new products, and their willingness to take risks. Customers can thus be classified as innovators, early adopters, early majority, late majority and laggards. Direct export: selling goods to foreign buyers without the intervention of an intermediary. Direct mail: a direct marketing technique involving the delivery of promotional material to named individuals at their homes or organisational premises. Direct marketing: an interactive system of marketing that uses one or more advertising media to effect a measurable response at any location, forming a basis for further developing an ongoing relationship between an organisation and its customers. Direct response advertising: advertising through mainstream advertising media that encourages direct action from the audience, for example, requests for more information, requests for a sales visit, or orders for goods. Direct supply: a distribution channel in which the producer deals directly with the end customer without the involvement of intermediaries. Discontinuous innovation: represents a completely new product concept unlike anything the customer has yet experienced, and thus involves a major learning experience for the customer with much information searching and evaluation. Discount clubs: similar to wholesalers, but re-selling in bulk to consumers who are members of the club rather than small retailers. Disintermediation: cutting one or more intermediaries out of the distribution channel.
Distributors and dealers: intermediaries who add value through the provision of special services associated with the selling of a product and the after- sales care of the customer. Diversification: developing new products for new markets. Dotcom: a company set up specifically to sell or deliver goods and/or services via the internet. DSS: decision support system; an extension of the MIS that allows the marketing decision maker to manipulate data to explore scenarios and ‘what if …' questions as an aid to decision-making. Durable products: products that last for many years and are thus likely to be infrequently purchased, such as electrical goods and capital equipment. Dynamically continuous innovation: the introduction of new products with an element of significant innovation that could require major reassessment of the product within customers' buying behaviour.
E-mail marketing: the use of e-mail as a direct marketing channel. E-marketing: the use of electronic media such as the internet, wireless marketing and iTV for any marketing purpose. E-tailer: an online retailer, including dotcom companies that sell goods/services, online ‘branches' of High Street stores, and manufacturers' online direct selling sites. Economic and competitive environment: trends and developments in terms of the economic well-being and condition of individuals, nations or trading blocs, including taxation and interest rates, etc.; the structure of markets in terms of the number of competitors and their ability to influence the market. Environmental scanning: the collection and evaluation of data and information from the marketing environment that can influence the organisation's marketing strategies. EPOS: electronic point of sale systems which streamline stock control and ordering systems through barcode scanning and allow the automatic processing of credit card payments for goods. Eurobrand: (also known as a pan-European brand) a brand which is marketed and sold with a standardised offering across a number of different European countries. Evoked set: the shortlist of potential products that the consumer has to choose from within the purchasing decision-making process. Exchange process: the interaction between buyer and seller in which each party gives the other something of value. Usually, the seller offers goods and services, and the buyer offers money. Extended problem solving: a purchasing situation usually involving a great deal of time and conscious information searching and analysis, as it involves high-priced goods which are purchased very infrequently; the consequences of making a ‘wrong' decision are severe and thus the customer is prepared to invest time and effort in the process.
Extending the product line: adding further product items into a product line to extend coverage of the market, for instance introducing a bottom of the range cut-price version of a product, or developing a premium quality product to extend the top end of the range.
Family lifecycle: a model representing the way in which a family's structure changes naturally over time. Field marketing agencies: agencies which undertake in-store sales promotions, sampling, and/or the setting up and maintenance of POS material. Filling the product range: adding further product items into a product line to fill gaps within the range, for instance introducing additional flavors, pack sizes or packaging formats. Fmcg products: fast moving consumer goods; relatively low-priced, frequently purchased items, such as groceries and toiletries. Focus group: a small group of people, considered to be representative of the target segment, invited to discuss openly products or issues at their leisure in a relaxed environment. Forecasts: estimates of future demand, sales or other trends, calculated using quantitative and/or qualitative techniques. Franchise: a contractual vertical marketing system in which a franchisor licenses a franchisee to produce and market goods or services to criteria laid down by the franchisor in return for fees and/or royalties. Franchisee: an intermediary who holds a contract to supply and market a product or service to operating standards and criteria set by the franchisor. Franchisor: the individual or organisation offering franchise opportunities. Frequency: the average number of times that a member of the target audience will have been exposed to an advertisement during a specified period. Full service agencies: advertising agencies that provide a full range of services, including research, planning, creative work, advertising production, media buying, etc. Such agencies might also offer other marketing communications services such as direct mail, sales promotion, and PR.
GE matrix: a tool for analysing a product portfolio, plotting industry attractiveness against business position for each product, resulting in a nine-cell matrix.
Generic strategies: three broad strategic options that set the direction for more detailed strategic planning: cost leadership, differentiation and focus. Geodemographics: a combination of geographic and demographic segmentation that can either give the demographic characteristics of particular regions, neighborhoods and even streets, or show the geographic spread of any demographic characteristics. Geographic segmentation: grouping customers in either B2B or consumer markets in terms of their geographic location.
Heterogeneity: a characteristic of services, describing how difficult it is to ensure consistency in a service product because of its ‘live' production and the interaction between different customers and service providers. House journal: an internal publication produced by an organisation in order to inform and entertain its employees and to generate better internal communication and relationships. Hypermarkets: very large self-service out-of-town outlets, 5,000 m2 or more, stocking not only a wide range of grocery and fmcg products, but also other consumer goods such as clothing, electrical goods, home maintenance products, etc.
Independent retail outlet: a single retail outlet, or a chain of two or three stores, managed by either a sole trader or a family firm. Indirect export: selling goods to foreign buyers through intermediaries such as export agents, export merchants or buying houses. Infomediaries: information brokers that gather information about online consumers, their preferences and shopping habits and then sell it on to other organisations and/or use it to act as a cybermediary on behalf of consumers to help them locate appropriate sites. Information overload: having so much information available that the consumer either cannot assimilate it all or feels too overwhelmed to take any of it in. Inseparability: a characteristic of services, describing how service products tend to be produced at the same time as they are consumed. Institutional advertising: a type of advertising that does not focus on a specific product, but on the corporate image of the advertiser.
Intangibility: a characteristic of services, describing their non-physical nature. Interactive marketing: (a) in services markets, the encounter and interaction between the service provider and the customer. (b) see Internet marketing. Interactive television: (iTV) a means of providing two-way communication between the consumer and the service provider using a television set-top box sending and receiving signals via satellite, cable or aerial. Intermediary: an organisation or individual through whom products pass on their way from the manufacturer to the end buyer. Internal marketing: the development and training of staff to ensure high levels of quality and consistency in service delivery and support. Internal marketing includes recruitment, training, motivation and productivity. International marketing: a particular application of marketing concerned with developing and managing trade across international boundaries. Internet marketing: (also known as online marketing) the use of the internet to disseminate information, communicates with the marketplace, advertise, promote, sell and/or distribute products or services. Inventory management: controlling stock levels within the physical distribution function to balance the need for product availability against the need for minimizing stock holding and handling costs.
Joint demand: where demand for one product or component in a B2B market is dependent on the supply or availability of another, for example a computer assembler's demand for casings might depend on the supply or availability of disk drives. Joint promotion: sales promotion activity undertaken by two or more brands or manufacturers jointly, for example collecting tokens from Virgin Cola in order to get two Eurostar tickets for the price of one. Joint ventures: a jointly owned company set up by two or more other organisations: (a) as a means of market entry method; or (b) as a means of pooling complementary resources and exploiting synergy. Judgemental budget setting: setting advertising or marketing budgets using methods that involve some degree of guesswork or arbitrary figures. Methods include: arbitrary, affordable, percentage of past sales, and percentage of future sales.
Layout: (a) in retailing, the arrangement of fixtures, fittings and goods in the store; (b) in advertising, the arrangement of the various elements of a print or poster advertisement. Leads: names, addresses and/or other details of individuals or organisations which could be potential customers. Learning: the change in behaviour that results from experience and practice. Licensing: an arrangement under which an organisation (the licensor) grants another organisation (the licensee) the right to manufacture goods, use patents, use processes, or exploit trademarks within a defined market. Often used as an international market entry method. Lifestyle segmentation: grouping consumers on the basis of psychographic characteristics. Limited problem solving: a purchasing situation usually involving some degree of conscious information searching and analysis, as it involves moderately high priced goods which are not purchased too frequently, and thus the customer might be prepared to shop around to a limited extent. Limited service agencies: advertising agencies that specialise in one or just a few parts of the whole advertising process; for example they might specialise in creative work, or media buying or advertising research. Loading up: an objective of sales promotion, encouraging customers to advance their buying cycles, i.e. to buy greater quantities of a product in the short term than normal. Logistics: the handling and movement of inbound raw materials and other supplies as well as outbound physical distribution.
M-marketing: (also known as mobile marketing) see wireless marketing. Macro segments: segments in B2B markets defined in terms of broad organisational characteristics such as size, location and usage rates, or in terms of product applications. Mail order: a form of non-store retailing usually involving a catalogue from which customers select goods, then mail or telephone their orders to the supplier. Goods are delivered to the customer's home. Mailing list: a list of names and addresses, which can be compiled from organisational records or purchased, used as the basis for direct marketing activities. Manufacturer brands: branding applied to goods that are produced and sold by a manufacturer who owns the rights to the brand.
Manufacturing subsidiary: a subsidiary company set up in a foreign market to manufacture or assemble a product. Mark-up: the sum added to the trade price paid for a product to cover the intermediary's costs and profit. Mark-up can be measured as a percentage of the trade price or as a percentage of the resale price. Market coverage: ensuring that the product is made available through appropriate intermediaries so that: (a) the potential customer can access it as easily as possible; and (b) the product is properly displayed, sold and supported within the channel of distribution. Market coverage might involve intensive distribution, selective distribution or exclusive distribution. Market development: selling existing products into new segments or geographic markets. Market entry methods: ways of getting into international markets, including direct exporting, indirect exporting, licensing, franchising, sales or manufacturing subsidiaries, joint ventures, or strategic alliances. Market penetration: increasing sales volume in current markets. Market potential: the total level of sales achievable in a market assuming that every potential customer in that market is buying, that they are using the product on every possible occasion, and that they are using the full amount of product on each occasion. Market segmentation: breaking a total market down into groups of customers and/or potential customers who have something significant in common in terms of their needs and wants or characteristics. Marketing: creating and holding customers by producing goods or services that they need and want, communicating product benefits to customers, ensuring that goods and services are accessible, and that they are available at a price that customers are prepared to pay. Marketing audit: the systematic collection, analysis and evaluation of information relating to the internal and external environments that answers the question ‘Where are we now?' for the organisation. Marketing concept: a philosophy of business, permeating the whole organisation, that holds that the key to organisational success is meeting customers' needs and wants more effectively and more closely than competitors. Marketing environment: the external world in which the organisation and its potential customers have to exist, and within the context of which marketing decisions have to be made. Marketing mix: the combination of the 4Ps that creates an integrated and consistent offering to potential customers that satisfies their needs and wants. Marketing objectives: what the organisation is trying to achieve through its marketing activities during a specified period. Closely linked with corporate objectives.
Marketing orientation: an approach to business that centres its activities on satisfying the needs and wants of its customers. Marketing plan: a detailed written statement specifying markets, marketing programmers, responsibilities, time-scales, controls and resources. Plans may be short term or long term, strategic or operational in focus. Marketing PR: public relations activities focused on particular products or aspects of their marketing campaigns. Marketing programmes: specific marketing actions, specified within the marketing plan, involving the use of the marketing mix elements in order to achieve marketing objectives. Marketing research: the process of collecting and analysing information in order to solve marketing problems. Marketing strategy: the broad marketing thinking that will enable an organisation to develop its products and marketing mixes in the right direction, consistent with overall corporate objectives. Master franchising: a franchisor grants an individual or organisation in a particular country or other trading region the exclusive right to develop a franchisenetwork by sub-franchising within that territory. Micro segments: segments in B2B markets defined in terms of detailed organisational characteristics such as management philosophy, decision-making structures, purchasing policies, etc. MIS: marketing information system; the formalised collection, sorting, analysis, evaluation, storage and distribution of marketing data. Mobile marketing: (also known as m-marketing) see wireless marketing. Modified re-buy: goods and services purchased relatively infrequently by organisations which might want to update their information on available products and suppliers before making a repeat purchase decision. Money-based sales promotions: sales promotions that centre around some kind of financial incentive: money-off packs, cash rebate offers, or coupons. Motivation: the driving forces that make people act as they do. Multiple sourcing: the sourcing of a particular B2B good or service from more than one supplier simultaneously. Multivariable segmentation: using a number of different variables to develop a rich profile of a target group of customers. target
Negotiation: a give and take process between a buyer and a seller in which precise terms of supply, specification, delivery, price, and after-sales service, etc. are agreed. New product development (NPD): the process of seeking and screening new product ideas, analysing their commercial feasibility, developing and test marketingthe product and its associated marketing mix, launching the product fully, then monitoring and evaluating its initial progress. New task purchasing: goods and services that are purchased extremely infrequently by organisations, and involve a high level of formalised information collection and analysis before a purchasing decision is made. Non-durable products: products that can only be used once or a few times before replacement, such as groceries or office stationery. Non-profit marketing: marketing activities undertaken by organisations which do not have profit generation as a prime corporate objective, such as charities, public sector health care, and educational establishments.
Open-ended questions: market research questions which do not offer a respondent a list of alternative answers. The respondents are encouraged to answer spontaneously and to enter into explanation of their answers. Opt-in: a mechanism by which an individual can signify agreement or specifically request to be included on a telemarketing, direct mail or e-mail marketing list. Opt-out: a mechanism by which an individual can specifically request to be excluded from or deleted from a telemarketing, direct mail or e-mail marketing list. Order maker: Sales representatives with responsibility for: (a) finding new customers and making sales to them; and (b) actively increasing the volume or variety of sales to existing customers. Order taker: a sales representative who either has a set pattern of customer contact or waits for customers to contact him/her when they want to buy. Organizational marketing: (also known as industrial marketing or business-to-business (B2B) marketing) activities directed towards the marketing of goods and services by one organisation to another. Out of town: describes large retail sites located away from the town centres so that they are easily accessible to large numbers of car-borne shoppers. Outsourcing R&D: commissioning other organisations or research bodies to undertake specific research and development projects, rather than handling them in-house.
Own-label brands: branding applied to goods that are produced by a manufacturer on behalf of a retailer or wholesaler who owns the rights to the brand.
Penetration pricing: setting prices low in order to gain as much market share as possible as quickly as possible. Perception: the way in which individuals analyse and interpret incoming information and make sense of it. Perishability: a characteristic of services, describing how service products cannot be stored because they are produced and offered at particular moments in time. Permission marketing: developing a marketing campaign on the basis that an individual or organisation has explicitly consented to being targeted, for example through the use of optin and opt-out mechanisms. Personal selling: interpersonal communication, often face to face, between a sales representative and an individual or group, usually with the objective of making a sale. Personality: features, traits, behaviours and experiences that make each person a unique individual. Physical distribution: the handling and movement of outbound goods from an organisation to its customers. Pioneer advertising: advertising used in the early stages of a product lifecycle to explain what a product is, what it can do and what benefits it offers. Political and legal environment: the governmental influences, at local, national and European levels, that inhibit or encourage business; the legal and regulatory frameworks within which organisations have to operate, including national and European law, local by-laws, regulations imposed by statutory bodies and voluntary codes of practice. POS: point of sale; marketing communication activity, for example sales promotions, displays, videos, leaflets, posters, etc., which appears in retail outlets at the place where the product is displayed and sold.
Post-purchase evaluation: the stage after a product or service has been purchased and used in which the consumer reflects on whether the product met expectations, exceeded them or was disappointing. Post-testing: Evaluation undertaken during or after an advertising campaign to assess its impact and effects. Potential product: what the product could and should be in the future to maintain its differentiation. PR: Public relations. Premium price: a price which is distinctly higher than average to reflect better product quality, exclusivity or status. Pre-testing: showing an advertisement to a sample of the target audience during its development to check whether it is conveying the desired message in the desired way with the desired effect. Press relations: cultivating good relationships between an organisation and the media as an aid to public relations activities. Price: a medium of exchange; what is offered in return for something else; usually measured in terms of money. Price comparison: using price as a means of comparing two or more products in order tojudge: (a) their likely quality in the absence ofother information; (b) which offers the best valuefor money. Price differential: any difference in the prices charged for the same product to different market segments or in different geographic regions. Price elasticity of demand: the responsiveness of demand to changes in prices. Elastic products are very responsive, so that a price increase leads to a fall in demand, while inelastic products are very unresponsive and thus a rise in price leads to little or no change in demand. Price negotiation: bargaining between a buyer and a seller to agree a mutually acceptable price. Price objectives: what the organization is trying to achieve through its pricing, measured in financial or market share terms, and closely linked with overall corporate and marketing objectives. Price perception: a customer's judgments of a price in terms of whether it is thought to be too high, about right or extremely good value for money; this judgment might vary with different circumstances and is often formed in the light of what other alternative products are available. Price sensitivity: the extent to which price is an important criterion in the customer's decisionmaking process; thus a price sensitive customer is likely to notice a price rise and switch to a cheaper brand or supplier. Pricing method: the means by which prices are calculated. Methods can be cost-orientated, demand orientated, or competition-orientated.
Pricing policies and strategies: the overall strategic guidelines for the pricing decision, specifying pricing's role within an integrated marketing mix. Pricing tactics: short-term manipulation of price to achieve specific goals, as for example in money-based sales promotions. Primary research: marketing research specially commissioned and undertaken for a specific purpose. Problem recognition: the realisation, triggered by either internal or external factors, that the consumer or the organisation has a problem that can be solved through purchasing goods or services. Product-based sales promotions: sales promotions that centre around some kind incentive connected with the product: extra product free, BIGIF, or samples. Product development: selling new or improved products into existing markets. Product items: the individual products or brands that make up a product line. Product lifecycle (PLC): a concept suggesting that a product goes through various stages in the course of its life: introduction, growth, maturity and decline. At each stage, a product's marketing mix might change, as will its revenue and profit profile. Product lines: a group of products, closely related by production or marketing considerations, that exists within the overall product mix. Product manager: the individual within an organisation responsible for the day-to-day management and welfare of a product or family of products at all stages of their product lifecycle, including their initial development. Product mix: the total sum of all the product items and their variants offered by anorganisation. Product orientation: an approach to business that centres its activities on continually improving and refining its products, assuming that customers simply want the best possible quality for their money. Product portfolio: the set of different products that an organisation produces, ideally balanced so that some products are mature, some are still in their growth stage while others are waiting to be introduced. Product positioning: developing a product and associated marketing mix that: (a) is ‘placed' as close as possible in the minds of target customers to their ideal in terms of important features and attributes; and (b) clearly differentiates it from the competition. Product repositioning: refining the product and/or its associated marketing mix in order to change its positioning either: (a) to bring it closer to the customer's ideal; or (b) to move it further away from the competition. Product specification: the criteria to which an organisational purchase must conform in terms of quality, design, compatibility, performance, price, etc.
Production orientation: an approach to business that centres its activities on producing goods more efficiently and cost effectively, assuming that price is the only factor important to customers. Promotional mix: the elements that combine to make an organisation's marketing communications strategy: advertising, sales promotion, personal selling, direct marketing and public relations. Prospecting: in personal selling, finding new potential customers who have the ability, authority and willingness to purchase. Psychographics: (also known as lifestyle segmentation) defining consumers in terms of their attitudes, interests and opinions. Psychological pricing: using price as a means of influencing a consumer's behaviour or perceptions, for example using high prices to reinforce a quality image, or selling at £2.99 instead of £3.00 to make the product appear much cheaper. Pull strategy: a communications strategy that focuses on the end consumer rather than other members of the channel of distribution. Thus a manufacturer might focus on communication to consumers, rather than to wholesalers or retailers, thus helping to pull the product down the channel. Public relations (PR): a deliberate, planned and sustained effort to institute and maintain mutual understanding between an organisation and its publics (Institute of Public Relations definition). Publicity: a tool of public relations focused on generating editorial media coverage for an organisation and/or its products. Publics: any group, with some common characteristic with which an organisation needs to communicate, including the media, government bodies, financial institutions, pressure groups, etc. as well as customers and suppliers. Purchasing policy: an organisation's preferences, systems and procedures for purchasing including, for example, attitude towards favored or approve suppliers, single or multiple sourcing, and rules and guidelines. Purchasing situation: the context in which a consumer purchasing decision is made, defined by the frequency of purchase, the risks involved, and the level of information searching undertaken: routine problem solving, limited problem solving, and extended problem solving. Push strategy: a communications strategy that focuses on the next member of the channel of distribution rather than on the end consumer. Thus a manufacturer might focus on communication to wholesalers or retailers rather than to consumers, thus helping to push the product down the channel.
Qualified prospects: potential customers who have been screened to check that they meet relevant criteria as potential purchasers, for example checking their financial status or that they do actually needthe product. Qualitative research: the collection of data that are open to interpretation, for instance on attitudes and opinions, and that might not be validated statistically. Quantitative research: the collection of quantified data, for figures, demographic data, purchase frequency, etc., that can be subjected toR example sales
Rating scales: a form of multiple choice market research questionnaire question in which respondents are asked to indicate their answer on a scale, for example ranging from 1 to 5 where 5 = ‘strongly agree' and 1 = ‘strongly disagree' with a given statement. Reach: the percentage of the target market exposed to an advertisement at least once during a specified period. Reference groups: groups to which an individual belongs or to which the individual aspires to belong, and which influence the individual's motivation, attitudesand behaviour. Relationship lifecycle: the evolution of buyer–seller relationships in B2B markets, through stages including awareness, exploration, expansion, commitment and dissolution. Relationship marketing: a form of marketing that puts particular emphasis on building a longer-term, more intimate bond between an organisation and its individual customers. Reminder and reinforcement advertising: a type of advertising, targeted at consumers who have already tried and used the product before, that reminds consumers of a product's continued existence and of its unique benefits. Repeat purchase: the purchase and use of a product on more than one occasion by a particular customer. Retailer: an intermediary which buys products from wholesalers and resells them to consumers. either from manufacturers or
Rolling launch: the gradual launch of a new product, region by region. Routine problem solving: a purchasing situation usually involving low-risk, low-priced, regularly purchased goods, which does not involve much, if any, information searching or analysis on the part of the buyer. Routine re-buy: goods and services purchased frequently by organisations from established suppliers, with little, if any, formal decision-making involved in therepeat purchase.
Sales orientation: an approach to business that centres its activities on selling whatever it can produce, assuming that customers are inherently reluctant to purchase. Sales potential: the share of a total market that the organisation can reasonably expect to capture. Sales presentation: the stage of the personal selling process in which the sales representative outlines the product's features and benefits. Sales promotion: usually short-term tactical incentives offering something over and above the normal product offering to encourage customers to act in particular ways. Sales quotas: the sales targets that a sales representative has to achieve, broken down into individual product areas and specified as sales value or volume. Sales subsidiaries: a subsidiary company set up in a foreign market to handle marketing, sales, distribution and customer care in that market. Sampling: (a) a form of product-based sales promotion involving the distribution of samples of products in a variety of ways, so that consumers can try them and judge them for themselves; and (b) in market research, the process of setting criteria and then selecting the required number of respondents for a research study. Sampling process: defining the target population for a market research study; finding a means of access to that population, and selecting the individuals to be surveyed within that population. Secondary research: data which already exist in some form, having been collected for a different purpose, perhaps even by a different organisation, and which might be useful in solving a current problem. Self-liquidating offers: a form of merchandise-based sales promotion that invites the consumer to send cash, and often proofs of purchase, in return for merchandise. The price charged covers the cost of the merchandise and a contribution to handling and postage. SEM: single European market; since 1992, completely free trade has been possible between member states of the EU, although the process of harmonising marketing regulations, product standards, tax rates, etc. is an ongoing process that has not yet been fully achieved. Semi-structured interview: a form of market research that involves some closed questions for collecting straightforward data and some open-ended questionsto allow the respondent to explain more complex feelings and attitudes, for example. Services: goods that are largely or mainly non-physical in character, such as personal services, travel and tourism, medical care or management consultancy. Shell directional policy matrix: a tool for analysing a product portfolio, plotting competitive capability against prospects for sector profitability for each product, resulting in a nine-cell matrix.
Shopping goods: consumer goods purchased less frequently than convenience goods, and thus requiring some information search and evaluation; related tolimited problem solving buying behaviour. SIC code: standard industrial classification; a means of categorising organisations in terms of the nature of their business. Single sourcing: the sourcing of a particular B2B good or service from only one supplier. Skimming: setting prices high in order to attract the least price-sensitive customers and to generate profit quickly before competitors enter the market and start to force prices down. Slice of life: a style of advertising that shows how the product fits into a lifestyle that is similar to that of the target audience, or represents a lifestyle that they can identify with or aspire to. Small business: small businesses are usually defined as those with fewer than 100 employees. Social class: a form of stratification that structures and divides a society, often on the basis of income and occupation, for marketing purposes. Sociocultural environment: trends and developments within society as a whole, affecting the demographic structure of the population, lifestyles, attitudes,culture, issues of public and private concern, tastes and demands. Source credibility: the trustworthiness, likeability, respect or expertise of the perceived source of a marketing message in the minds of the target audience. Source credibility might be transferable to the actual subject of the message, or might at least ensure that the message is listened to. Speciality goods: expensive, infrequently purchased consumer goods; related to extended problem solving buying behaviour. Speciality stores: stores which tend to concentrate on one clearly defined product area, focusing on depth of range. Sponsorship: the provision of financial or material support to individuals, teams, events or organisations, outside the sponsor's normal sphere of operations. This might involve sport, the arts, community or charity work. Standardisation: a deliberate strategy to maintainthe same product and marketingmix across all international markets without adapting it for local conditions. STEP factors: the four broad categories of influences that create the marketing environment: sociocultural, technological, economic and competitive, and political and legal. Store image: the positioning of a store in terms of its branding, product selection, interior and exterior design, fixtures and fittings, lighting, etc. Storyboard: part of the process of developing a television or cinema advertisement, a storyboard shows sketches of the main scenes in the advertisement, describes what is happening at that point, and what sound effects should be used.
Strategic alliance: a collaborative agreemententered into by two or more organisations with a specific purpose in mind. It might include joint ventures or looser arrangements that do not involve any equity stakes. Strategic business unit (SBU): a group of products, markets or operating divisions with common strategic characteristics, that is a profit centre in its own right. An individual product, market or operating division could also be defined as an SBU if appropriate. Strong theory of communication: a theory that assumes that marketing communication takes the potential buyer through the buyer readiness stages in sequence, thus forming attitudes and opinions before a purchase has taken place. Supermarkets: self-service stores carrying a wide range of grocery and fmcg products, with smaller branches located in town centres and larger stores located on out-of-town sites. Sustainable marketing: the establishment, maintenance and enhancement of customer relationships so that the objectives of the parties involved are met without compromising the ability of future generations to achieve their own objectives. Switchers: consumers who are not loyal to any one brand of a particular product and switch between two or more brands within the category. SWOT analysis: a technique that takes the findings of the marketing audit and categorises key points as strengths, weaknesses, opportunities or threats.
Tangible product: the way in which the concept of the core product is turned into something ‘real' that the customer can interact with, including design, quality,branding, and product features. Targeting: deciding how many market segments to aim for and how to do it. Thereare three broad targeting strategies: concentrated, differentiatedand undifferentiated. Technological environment: trends and developments in the technological field that might: (a) improve production; (b) create new product opportunities;(c) render existing products obsolete; (d) change the ways in which goods and services are marketed; or (e) change the profile of customers' needs and wants. Telemarketing: using the telephone: (a) to make sales directly; or (b) to develop customer relationships and customer care programmes further. Calls might be: (a) outbound, instigated by the organisation; or (b) inbound, instigated by the customer. Teleshopping: a form of non-store retailing including shopping by telephone and shopping via computer networks.
Tendering: where potential suppliers bid competitively for a contract, quoting a price to the buyer. Test marketing: the stage within the new product development process in which a product and its associated marketing mix are launched within a confined geographic area to get as realistic a picture as possible of how that product is likely to perform when fully commercialised. Trade shows and exhibitions: centralised events, large or small, local or international, focused on an industry or a product area, that bring together a wide range of relevant suppliers and interested customers under one roof. Trading up: an objective of sales promotion, encouraging customers either to buy bigger sized packs of products, or to buy the more expensive products in a range. Transfer pricing: prices charged for the exchange of goods and services between different departments or operating divisions within the same organisation. Trial: the purchase and use of a product for the first time by a particular customer. Trial price: a very low or minimal temporary price often used for new products to encourage consumers to try them. Trial sizes: a form of product-based sales promotion involving the sale of products in smaller than normal packs, so that consumers can buy and try them with minimal risk.
Unsought goods: goods that consumers did not even know they needed until either (a) an emergency arose that needed an immediate purchasing decision to help resolve it; or (b) an aggressive sales representative pressurized them into a purchase.
Value: a customer's assessment of the worth of what they are getting in terms of a product's functional or psychological benefits. Value management: the analysis of products and processes to see where the greatest costs are being incurred and where the greatest value is added. This can lead to cost savings and better value for money to the customer. Variety stores: smaller than department stores, variety stores stock a relatively limited number of different product categories, but in greater depth. Vertical marketing systems: a channel of distribution which is viewed as a coordinated whole and is effectively managed or led by one channel member. The leadership might be contractual,
or derived from the power or dominance of one member, or arise from the ownership of other channel members by one organisation. Viral marketing: the marketer uses electronic media to stimulate and encourage word-of-mouth or electronic message dissemination between individuals.
Weak theory of communication: a theory that assumes that marketing communication creates awareness of products, but that attitudes and opinions are only created after purchase and trial. Wholesaler: an intermediary which buys products in bulk, usually from manufacturers, and resells them to trade customers, usually small retailers. Wireless marketing: (also known as m-marketing or mobile marketing) the use of text messaging via a mobile telephone as a means of marketing communication.
ABHAY KUMAR PRAJAPATI
PGDM (Marketing and HR), ICBMSchool of Business excellence, Hyd, India email@example.com firstname.lastname@example.org